Published: Thursday, April 25, 2013 at 4:30 a.m.

Last Modified: Wednesday, April 24, 2013 at 12:07 p.m.

ASHEVILLE — A judge sentenced disbarred Hendersonville lawyer Sam Neill Wednesday to three years in prison for federal tax fraud.

U.S. District Court Judge Martin Reidinger also ordered Neill to pay the government $492,665 in restitution for back taxes and to complete a year of supervised release at the end of his sentence.

Neill’s sentence will run consecutively with any time ordered during his sentencing this morning on state charges of embezzlement.

Neill pleaded guilty to one count of federal tax fraud in a plea deal with attorneys last April. Prosecutors say he “understated” his income for 2008 and 2009 by $1.5 million — an amount they say ties directly to his state charges.

On Sept. 17, Neill pleaded guilty to five state counts of felony embezzlement in Henderson County Superior Court. Pending his efforts with restitution payments, Neill faces up to 84 years in prison for stealing nearly $2.5 million from estates and trusts under his care.

“Mr. Neill will serve with grace and understanding... that he can start his life again,” his lawyer, Joseph B. Cheshire, told the court, asking the judge to balance his decision with the life of service Neill has lived. He spent 10 years of his life working 20 hours a week helping and representing the indigent, he told the judge.

But, he admitted, Neill took money that wasn’t entitled to him “against what was taught to him by his church and his profession.”

Neill’s voice quivered as he fought back tears while reading a prepared statement to the judge.

“I wish to apologize to this court, to my victims, to my family and to my profession,” he said, adding that he has “sincere regrets” for his actions.

“My life has already been destroyed because I’ve lost my profession, my wealth and my reputation,” Neill said.

He was stripped of his license to practice law in 2011 after a career of 36 years. A Democrat, he also ran for Congress in 2000 and 2002, but lost in each attempt to Republican Charles Taylor.

Reidinger said he received and reviewed a “considerable stack of letters” written on Neill’s behalf. He read an excerpt of a letter from Neill’s son: “I believe my aging father had taken on more responsibility than he could handle and he eventually cracked...”

“I believe that hits the nail on the head,” Reidinger said. “That explains it, but it does not excuse it.”

Neill’s family watched in silence as the judge ordered Neill to be “committed to the U.S. Bureau of Prisons for a term of 36 months.”

“I have found this to be a particularly difficult case,” Reidinger said, “and not because the person who stands before me is a lawyer... here, I have a case of someone who has done a lot for the community.”

But, he added, Neill could not be held to a “separate set of standards.” The “seriousness here,” he said, is the “damage to justice.”

The judge told Neill that people — and especially his clients — trusted him, “and that (trust) was breached.”

He recommended that Neill, whom he says has a “history of mental health issues,” be accepted into a mental health treatment program during his incarceration. He added that he will also recommend Neill be “placed at a facility that addresses his mental health and physical health needs” and that is near his family.

“Mr. Neill, this is a sad day for this court... there isn’t anything I can say that will make it any better,” Reidinger told him after sentencing.

Neill was allowed to remain free on bond until federal marshals contact him to surrender.

“I’m very let down with what he did with hospice,” said Vicki Stonecypher, a representative of a local charitable organization that lost money because of Neill’s embezzlement. “Hospice is just such a good organization. I just think it’s very sad (that) a lot of sick people and a lot of families of sick people have to suffer because of him.”

The Community Foundation of Henderson County, along with Four Seasons, a local hospice organization, lost a total of $884,000 that was intended for the charities from the Barry E. Clemo trust fund.

Neill was accused of taking $55,000 in 2000 and 2001 from the Harold R. Tallmadge Trust and has paid that off through a surety bond that guaranteed his legal work. He was also accused of taking $247,682 from the Edna A. Davis revocable living trust fund in 2010 and has promised to repay that amount.

Neill promised to repay the Irene F. Meinke estate $442,000 after taking from the fund in 2008.

Prosecutors say he embezzled $850,000 in 2008 from the Ruth D. Danis estate.

<p>ASHEVILLE — A judge sentenced disbarred Hendersonville lawyer Sam Neill Wednesday to three years in prison for federal tax fraud.</p><p>U.S. District Court Judge Martin Reidinger also ordered Neill to pay the government $492,665 in restitution for back taxes and to complete a year of supervised release at the end of his sentence. </p><p>Neill's sentence will run consecutively with any time ordered during his sentencing this morning on state charges of embezzlement.</p><p>Neill pleaded guilty to one count of federal tax fraud in a plea deal with attorneys last April. Prosecutors say he “understated” his income for 2008 and 2009 by $1.5 million — an amount they say ties directly to his state charges.</p><p>On Sept. 17, Neill pleaded guilty to five state counts of felony embezzlement in Henderson County Superior Court. Pending his efforts with restitution payments, Neill faces up to 84 years in prison for stealing nearly $2.5 million from estates and trusts under his care.</p><p>“Mr. Neill will serve with grace and understanding... that he can start his life again,” his lawyer, Joseph B. Cheshire, told the court, asking the judge to balance his decision with the life of service Neill has lived. He spent 10 years of his life working 20 hours a week helping and representing the indigent, he told the judge.</p><p>But, he admitted, Neill took money that wasn't entitled to him “against what was taught to him by his church and his profession.”</p><p>Neill's voice quivered as he fought back tears while reading a prepared statement to the judge.</p><p>“I wish to apologize to this court, to my victims, to my family and to my profession,” he said, adding that he has “sincere regrets” for his actions.</p><p>“My life has already been destroyed because I've lost my profession, my wealth and my reputation,” Neill said.</p><p>He was stripped of his license to practice law in 2011 after a career of 36 years. A Democrat, he also ran for Congress in 2000 and 2002, but lost in each attempt to Republican Charles Taylor.</p><p>Reidinger said he received and reviewed a “considerable stack of letters” written on Neill's behalf. He read an excerpt of a letter from Neill's son: “I believe my aging father had taken on more responsibility than he could handle and he eventually cracked...” </p><p>“I believe that hits the nail on the head,” Reidinger said. “That explains it, but it does not excuse it.”</p><p>Neill's family watched in silence as the judge ordered Neill to be “committed to the U.S. Bureau of Prisons for a term of 36 months.”</p><p>“I have found this to be a particularly difficult case,” Reidinger said, “and not because the person who stands before me is a lawyer... here, I have a case of someone who has done a lot for the community.”</p><p>But, he added, Neill could not be held to a “separate set of standards.” The “seriousness here,” he said, is the “damage to justice.”</p><p>The judge told Neill that people — and especially his clients — trusted him, “and that (trust) was breached.”</p><p>He recommended that Neill, whom he says has a “history of mental health issues,” be accepted into a mental health treatment program during his incarceration. He added that he will also recommend Neill be “placed at a facility that addresses his mental health and physical health needs” and that is near his family.</p><p>“Mr. Neill, this is a sad day for this court... there isn't anything I can say that will make it any better,” Reidinger told him after sentencing.</p><p>Neill was allowed to remain free on bond until federal marshals contact him to surrender. </p><p>“I'm very let down with what he did with hospice,” said Vicki Stonecypher, a representative of a local charitable organization that lost money because of Neill's embezzlement. “Hospice is just such a good organization. I just think it's very sad (that) a lot of sick people and a lot of families of sick people have to suffer because of him.”</p><p>The Community Foundation of Henderson County, along with Four Seasons, a local hospice organization, lost a total of $884,000 that was intended for the charities from the Barry E. Clemo trust fund.</p><p>Neill was accused of taking $55,000 in 2000 and 2001 from the Harold R. Tallmadge Trust and has paid that off through a surety bond that guaranteed his legal work. He was also accused of taking $247,682 from the Edna A. Davis revocable living trust fund in 2010 and has promised to repay that amount. </p><p>Neill promised to repay the Irene F. Meinke estate $442,000 after taking from the fund in 2008. </p><p>Prosecutors say he embezzled $850,000 in 2008 from the Ruth D. Danis estate.</p><p>Reach Weaver at emily.weaver@blueridgenow.com or 828-694-7867.</p>